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UPDATE: Macquarie Upgrades ANN

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In a note released Friday, Macquarie upgraded ANN (NYSE: ANN) from Neutral to Outperform and raised the price target to $53.

In describing the reasoning behind this upgrade Macqaurie analyst Liz Dunn provided a list Including:

  • On March 20th, Golden Gate Capital Public Equity Opportunities announced a 9.5 percent stake in Ann Inc.
  • ANN has persistently traded at a discount to our coverage universe.
  • ANN just announced a strategic restructuring that is expected to save $25 million per year.
  • We believe activist shareholders could encourage the company to take on debt to fund a sizable buyback, and ANN's steady free cash flow could support the addition of one turn of leverage.
  • We also believe the company could be encouraged to pursue a sale to a strategic acquirer.
  • Guidance for 1Q and FY14 are appropriately conservative.

In the pre-market session, ANN was trading up a little under two percent.

Latest Ratings for ANN

DateFirmActionFromTo
May 2015Piper JaffrayDowngradesOverweightNeutral
May 2015RBC CapitalInitiates Coverage onSector Perform
Mar 2015Piper JaffrayMaintainsOverweight

View More Analyst Ratings for ANN
View the Latest Analyst Ratings

Posted-In: MacquarieAnalyst Color News Upgrades Price Target Analyst Ratings

 

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